MONTREAL, June 8 /CNW Telbec/ - Sofame Technologies Inc. (TSX-V: SDW), a leading manufacturer of environmentally efficient industrial hot water systems and cost efficient heat recovery equipment, announced today that it has entered into an Equity Line Facility in the amount of $10,000,000 with Dutchess Opportunity Cayman Fund, Ltd.
During the 36-month term of the Equity Line Facility, Sofame shall have the option to sell to Dutchess up to 17,500,000 shares of common stock authorized for the line. Each drawdown will be priced based on the then-current stock price in accordance with an agreed-upon formula. Sofame will control the timing and amount of any share sales to Dutchess. Sofame will file an annual information form and short form prospectus in Canada, which will be subject to required corporate and regulatory approvals, including that of the TSX Venture Exchange and the Autorité des marches financiers. No commissions will be paid by Sofame as a result of signing the Equity Line Facility.
"The completion of this $10 million facility with a well-established Investor such as Dutchess is a clear indication of investor optimism behind Sofame's plan to further penetrate the industrial energy efficiency market in the United States by creating a US subsidiary. Recent orders, improved operating results, signature of the Joint Venture Agreement with QED Connect, and the completion of this financing facility are all waypoints in a predetermined roadmap to success. Dutchess has been successfully funding public companies through Equity Line Facilities for over ten years. Their experience across multiple global exchanges makes Dutchess the right financing partner for Sofame," said John Gocek, Sofame's Chief Operating Officer.
"Dutchess is pleased to assist Sofame Technologies by providing capital from an Equity Line Facility. This funding will allow management to focus its efforts on the Company's growth as it plans to use proceeds to bring Cleantech manufacturing jobs to the United States. We believe that Sofame represents an interesting investment for our fund considering the Company has won several ASHRAE awards in the United States over the last 25 years. We are excited to participate with Sofame to help them achieve their goals," stated Jessica Geran, Director of Corporate Finance at Dutchess.
Douglas Leighton, Managing Director of Dutchess, stated, "We believe in management's efforts and this financing facility provides inexpensive and flexible access to capital for Sofame. Regardless of the ever-tightening capital markets, Dutchess continues to finance the growth of public companies, regardless of their size, including Sofame Technologies."
About Dutchess Capital
Dutchess Capital is an investment manager which provides creative financing for public companies. Founded in 2000, funds managed by Dutchess have made over $200 million in direct investments in companies throughout North America, Europe and Asia.For almost a decade, Dutchess has been a global leader in Equity Line Facilities (ELF) and has transacted in excess of $1.6 billion in such financings worldwide. The ELF is a flexible financing structure by which publicly traded companies can raise capital quickly, efficiently and with less dilution than most traditional offerings. For more information, please visit: www.dutchessopportunity.com, a fund managed by www.dutchesscapital.com
Sofame Technologies Inc. custom engineers and manufactures unique, high-efficiency direct-contact industrial hot water systems which extract up to 99 percent of heat from flue gases depending on the application, and return the energy in the form of high-temperature hot water or pre-heated make-up air. Sofame's products help hospitals, food processing plants, universities, central heating plants and utilities to reduce fuel costs and greenhouse gas emissions. Using world-leading, patented green technology, Sofame serves industrial, institutional and commercial markets through a network of dedicated engineering representatives. For more information, visit www.sofame.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Sofame Technologies Inc.
For further information: For further information: John Gocek, Chief Operating Officer, Sofame Technologies Inc., (514) 523-6545 ext. 200, Fax: (514) 524-6183, Cell: (514) 821-7776, firstname.lastname@example.org; www.sofame.com